You'll arrive in a bar. Smash open the plant pot in front of the tables to reveal an item, then fight the Skull Cross members in here. Move right to meet the owner of the bar, Callman. He's backed up with some Skull Cross members, which include a new enemy: May. May has a grab move and can also slice you with one of her knives.

Callman's main attack is his charge, which he usually does when he gets up, and even then, he'll only do it if you're close to him. So when you've knocked him down, stay away from him. He can also punch you, and he has a grab move where he kicks you in the back. He tends to hop forward to try and get you with his grab move, but he's not that difficult to beat. Just stay away from him whenever he gets up and you should be able to defeat him pretty easily. Once beaten, he'll try to get up, but won't make it and will remain on his knees.